In studying the trading of Katie Stockton, I noticed that she makes a lot of use of the Ichimoku Cloud indicator, so I decided to look into it further.  It can be complicated to understand, but I determined that the "Cloud" portion of the indicator is the best one to use for trend, support and resistance.  This is also how Katie Stockton uses it.

The Ichimoku Cloud, is a technical analysis tool that can help traders identify trends, momentum, and support and resistance levels.  It was developed by Japanese journalist Goichi Hosoda in the late 1930s and has gained popularity among traders in recent years.

The word “Ichimoku” can be translated as “one look” or “one glance,” which refers to the tool’s ability to provide a comprehensive view of price action with just one chart.   The cloud, which is the most distinctive feature of the tool, is composed of several lines that provide support and resistance levels and indicate trend direction.  

One of the most common trading strategies using the Ichimoku Cloud is trend following.  A trader can identify the trend by looking at the position of the price in relation to the Cloud.  If the price is above the Cloud, the trend is considered to be bullish.  On the other hand, if the price is below the Cloud, the trend is considered to be bearish.

The Cloud itself can act as a support or resistance level, depending on the position of the price in relation to the Cloud.  If the price is above the Cloud, the Cloud can act as a support level.  Conversely, if the price is below the Cloud, the Cloud can act as a resistance level.

While the actual Ichimoku Cloud indicator is made up of multiple lines, these tend to make the chart very "busy".  Other than the Cloud, the other lines are used to determine momentum and reversals.  Instead of using these, I prefer to use my standard moving average lines for this purpose.  In that way it combineds the best components of trend and direction and can help determine whether the chart is bullish or bearish during choppy, whipsaw action.

In the following examples, I will show you both a Daily and a Weekly chart so you can see how it can be used in different timeframes, and even more effectively if used together.  I'll start with just the Cloud itself, then add more indicators for confirmation.  As always, NEVER use only one indicator, it is important to get confirmation across multiple indicators.